Tap-and-go payment revolution

A new generation of payment cards is on the way to allow consumers to make small purchases, from a pint of beer to a newspaper, without cash.

From next year, Visa and the big banks will offer debit and credit cards which customers will simply touch onto or wave over a scanner. The process could cut paying time to a matter of seconds and banish long queues.

For security reasons, the value of purchases with 'tap and go' will be limited to £10. Spending over £10 will require shoppers to use their four-digit Pin. Payment will come direct from the customer's bank account if a debit card is used, or will be added to their credit card bill.

The system is already being used in many parts of the US and the Far East, where it is enormously popular.

It will inevitably speed the demise of cash on the High Street. Visa argues the system will be particularly suited to fast-food outlets, coffee shops, newsagents, off-licences, pubs and car parks.

The new cards will be issued from next year, while Visa is working with retailers to encourage them to fit the necessary till equipment. MasterCard is working on its own version of the technology.

Visa Europe's Sandra Alzetta said: 'With over 75% of all cash payments being less than £10, the introduction of contactless payments will play a major role in encouraging the use of cards over cash for low value transactions.'

A study by retail analysts Datamonitor suggests that 'tap and go' cards could replace the use of cash in purchases totalling £32bn a year within five to ten years.

Spokesman Kieran Hines said: 'Consumers benefit from far speedier service, while also benefiting from the convenience of not having to carry as much cash.'

The cards will work in a similar way to the Oyster scheme on London's transport system. Millions of commuters pay for travel by passing their Oyster cards over sensors at Tube stations or on buses.